Best Buy 2002 Annual Report Download - page 59

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Best Buy Co., Inc. 57
HTML Hyper Text Mark-Up Language used in
programming for the Internet
ISP Internet service provider
in-stock position the number of SKUs available for
purchase in the stores compared with the merchandise
assortment for that location
inventory turns the number of times the average
inventory is sold annually, based on average monthly
inventory balances
logistics transportation and distribution of products, both
inbound and outbound, between vendors and stores
MAP minimum advertised price
market reaction price in-store price changes in
response to competitors’ prices
MP3 short for MPEG layer 3, provides an efficient
audiocoding scheme that allows compression of audio
files by a factor of 12
NSO new store opening
other product category includes sales of performance
service plans, blank digital media, furniture, storage,
business cases and batteries
operating income percentage operating income
divided by revenues
PDA personal digital assistant
planogram the SKU-assigned layout of a product
category or specific fixture; also known as plano
POS point of sale
PRP Performance Replacement Plan, a contract that
covers replacement of products generally with a retail
selling price of $200 or less
PSP Performance Service Plan, a contract that covers
service and repair for products
P2P or Process to Profits a Best Buy initiative that
includes ad effectiveness, inventory management, sales
proficiency and selling total solutions
SG&A selling, general and administrative costs,
including compensation and benefits, occupancy costs,
administration, advertising, warehousing and
transportation from distribution centers to stores
SG&A percentage SG&A expense divided by revenues
shrink the loss of inventory, such as that due to
damage or theft
SKU stock-keeping unit (an indication of the depth
of assortment)
standard operating platform or SOP a part of
Best Buy culture that relies on documented processes for
handling most aspects of the business
supply chain management the coordination of
inventory management, the merchant group and logistics to
manage the flow of products from the vendor to the customer,
and the flow of information among all of these players
street date date an item is first available for sale.
A “hard” street date is vendor-enforced; a “soft” street date
is an estimated date of arrival but product can be sold
whenever it arrives
TiVo™personal video recorder